Bitcoin surged to $104,094.00 following news that the United States reduced tariffs on Chinese imports from 145% to 30% for 90 days. This announcement, made just a day after a historic trade agreement between the U.S. and China in Geneva, spurred immediate market reaction. China responded by lowering tariffs on imports from the U.S. from 125% to 10%.
Investors are reacting positively to the prospect of reduced trade tensions and improved global liquidity over the next 90 days. The crypto markets responded immediately, with Bitcoin rising from $72,877.39 on April 2 to $104,094.00. The total crypto market capitalization reached $3.3 trillion.
On April 2, President Donald Trump had doubled baseline tariffs on Chinese products to 145%, escalating the trade war. Beijing swiftly retaliated with a minimum 125% tariff on U.S. goods. The initial tariff hike on April 2 caused Bitcoin's price to fall from roughly $85,000 to as low as $70,000, and the total value of the cryptocurrency market bottomed out at about $1.7 trillion.
The market began to recover in late April as geopolitical tensions eased amid tariff talks. Scott Bessent, U.S. Treasury Secretary, and Jamieson Greer, Trade Representative, hailed the negotiations as a breakthrough. Both sides quickly agreed on the top terms.
The White House initially presented the decision to raise tariffs as an effort to protect American manufacturing and preserve domestic jobs. However, the broad import taxes reverberated through the world economy. Financial markets were roiled, and the crypto market experienced a slump as investors sought safety in assets like gold amid growing uncertainty.
This article is based on our author's analysis of materials taken from the following resources.